Washington (CNN) -- President Barack Obama on Tuesday signed into law a last-minute compromise plan to raise the nation's $14.3 trillion debt ceiling, narrowly averting what could have been an unprecedented default with calamitous economic consequences. Obama's signature capped a tumultuous negotiation with congressional leaders that spanned months before finally coming up with an agreement on Sunday, two days before the government said it would run short of money pay its bills while lacking the authority to borrow any more. On Monday, the U.S. House passed the compromise measure by a 269-161 vote, overcoming opposition from unhappy liberal Democrats and tea party Republicans.

"The agreement creates room for the private sector to continue to grow, without the threat of default and the burden of higher interest rates,"
Geithner wrote, noting the measure passed Tuesday locks in at least $2 trillion in long-term savings that are "phased in gradually to avoid hurting the economy in the near term."